Is BEW Engg overvalued or undervalued?

As of 11 July 2025, the valuation grade for BEW Engineering has moved from attractive to fair. The company is currently fairly valued, with a PE ratio of 17.47, an EV to EBIT ratio of 14.39, and a ROE of 18.09%. In comparison to its peers, Rail Vikas is considered expensive with a PE ratio of 62.08, while Ircon International is fairly valued with a PE of 24.72.
Despite the fair valuation, BEW Engineering has underperformed significantly compared to the Sensex, with a year-to-date return of -37.23% versus the Sensex's 6.37%. This stark contrast in performance may indicate underlying challenges that could affect future valuations.